Fees on secured loans
Secured loans often carry broker and lender fees, sometimes added to the loan. Working out the APR shows their real effect.
The calculator finds the monthly rate at which your payments exactly repay the money you actually receive, then turns it into an annual rate including the effect of compounding: APR = (1 + monthly rate)^12 − 1. Fees paid upfront reduce the money you receive, so they push the APR up.
Worked example
A £40,000 loan repaid at £474.81 a month for 10 years, with a £500 fee, has an APR of 8.1%.
Before you borrow
Your home may be repossessed if you don't keep up repayments on a loan secured on it.
Inputs for the home equity loan APR calculator
Amount borrowed
The amount of the loan.
Upfront fees
Any arrangement or other fees you pay at the start, or that are taken from the loan. Enter 0 if there are none.
Monthly payment
Your regular monthly repayment from the quote or agreement.
Term
How many years the payments last.
CALCULATOR QUESTIONS
Home equity loan APR calculator questions
What's the difference between APR and the interest rate?
The interest rate is what's charged on the balance. The APR also includes compulsory fees and the effect of compounding, so it's the better figure for comparing deals.
Are fees common on secured loans?
Yes, broker and lender fees are common. Include them to see the true APR.
What if fees are added to the loan?
Enter the amount you receive plus the fee as the amount borrowed, and the fee as an upfront fee.
What's the risk?
Your home may be repossessed if you don't keep up repayments.